Public Employee Healthcare Update

During an Executive Appropriations Committee meeting in November, said it hired an outside actuary to evaluate whether its health insurance plans were equivalent. PEHP’s analysis determined the Star Plan’s current design results in benefits that are 11 percent richer than the traditional plan.

Rep. Jim Dunnigan, R-Taylorsville, introduced House Concurrent Resolution 13, Concurrent Resolution for Public Employees Benefit and Insurance Program, at the beginning of the legislative session to address the inequality between the plans. The traditional plan has been adjusted over the past 10 years, while the Star Plan has not. HCR13 sought to address the inequity and “rebalance” the two plans.

After many meetings with legislators, Dunnigan offered a substitute concurrent resolution to fully fund both health insurance plans.

UPEA has been working with Dunnigan on the substitute legislation to reduce the premium split on the traditional plan from 90/10 to 92/8. The change will save employees who participate in the traditional plan, on an annual basis, approximately:

$205/family coverage

$164/two-party coverage

$75/single coverage

The changes will take place next fiscal year. In addition, the substitute bill postpones addressing the equity problem for a year as policymakers seek to come up with a longer-term plan. UPEA will remain involved in the ongoing policy discussion.